Direct lending

Tree Line’s ‘underwriting discipline’ attracted the insurance giant in its pursuit of exposure to mid-market direct lending.

The popularity of private credit is creating more competition and consequently more opportunities for both borrowers and lenders, according to Proskauer’s Faisal Ramzan and Alice Dawson-Loynes

LA-based manager has a record amount of available capital, but sees dip in fundraising from Q4 2023.

Blackstone took online pet care marketplace Rover private for $2.3bn, and Vista took software developer EngageSmart private for $4bn.

Credit strategy’s slice of the alternatives pie grew to $32.4bn in 2023 from $27.1bn the previous year.

CalPERS is adding 3% and CalSTRS 2% to private credit; the public equity allocation at both pensions will decline.

The deal is part of Pemberton’s long-term goal to expand its investor base into the wealth management space.

The manager’s deputy CIO for global credit, Justin Plouffe, will add direct lending to his responsibilities, as global credit becomes biggest segment.

Targeting lower middle market borrowers offers a pricing premium and better lender protections, but a long-term commitment to this segment is critical, says Rich Christensen, senior partner at TPG Twin Brook.